How To Earn $500 A Month From AT&T Stock Ahead Of Q2 Earnings

AT&T Inc. (NYSE:T) will release earnings results for the second quarter, before the opening bell on Wednesday, July 23.

Analysts expect the Dallas-based company to report quarterly earnings at 53 cents per share, down from 57 cents per share in the year-ago period. AT&T projects to report quarterly revenue of $30.46 billion. It reported $29.8 billion the previous year, according to data from Benzinga Pro.

On July 16, Morgan Stanley analyst Simon Flannery maintained an Overweight rating for AT&T. It also raised the price target from $31 to $32.

With the recent buzz around AT&T, some investors may be eyeing potential gains from the company's dividends. As of now, AT&T offers an annual dividend yield of 3.84%. That’s a quarterly dividend amount of 28 cents per share ($1.11 a year).

To figure out how to earn $500 monthly from AT&T, start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by AT&T's $1.11 dividend: $6,000 / $1.11 = 5,405 shares.

So, an investor would need to own approximately $147,989 worth of AT&T, or 5,405 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.11 = 1,081 shares, or $29,598 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

T Price Action: Shares of AT&T rose by 1.6% to close at $27.38 on Monday.

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